Japan stock market slightly pulled by Chinese stocks

TOPIX has risen over 10% since the start of the year, it is fairly solid, but since March it has been almost flat, so not weak, but there’s no sense of it being strong either.

Additionally, U.S. FANG started to surge around October 7, so somehow it feels like we’re being left behind abroad.

An investment trust aiming to track the NYSE FANG+ index, which is composed of Facebook, Amazon, Netflix, Google, etc.,「FANG＋ Index Open」 chart

Japanese stocks rose sharply when Mr. Kishida announced a flashy economic policy and announced his candidacy for the Liberal Democratic Party presidency, but after he said, “There are more important things to do,” the stock market returned to its previous level.

Nevertheless, they have fared better than the United States (New York Stock Exchange) and Germany.

Even compared with the U.S. FANG, it’s pointless to compare, so when you compare to the top 100 companies listed on the New York Stock Exchange, the NYSE100 index, it’s somewhat average.

Compared with Germany, it’s also average.

What’s worrying is the recent correlation with Chinese stocks (Shanghai Composite).
Kishida’s market may in fact have been a Chinese market as well.

As for those Chinese stocks,

In response to recent energy price increases,the National Development and Reform Commission seems to be trying to control energy prices rather than leaving them to the market.

When this information spread, commodities futures and stock prices fell (October 27–28).

Also,the authorities are intervening in the real estate market, education-related and high-tech companies.

If this happens,stock prices become distorted. In other words, the stock market is in an extremely opaque state that investors hate the most.

Will Japanese stocks be dragged down by Chinese stocks?

When you hear “dragging down,” it may have a negative nuance, but there will also be good times.